Galena Biopharma is facing shareholder lawsuits and an SEC investigation, but none of that came up at today’s annual shareholders meeting.

“The legal things at this point, hopefully will not prevent patients from getting the necessary treatments or stockholders from participating in the benefits,” said Jack Williams, a shareholder who attended the meeting at The Nines Hotel in downtown Portland.

Since the meeting was open only to shareholders, I wasn’t able to attend, but did speak with Williams and another shareholder afterward.

Galena’s stock later tumbled when TheStreet.com revealed it had paid an investor relations firm to publish favorable articles under aliases without disclosing the relationship.

The suits allege breach of fiduciary duties and violation of federal securities laws. The SEC also is investigating.

“We intend to vigorously defend against the foregoing complaints,” the annual report says. “We have been in contact with the SEC ... and are cooperating with the investigation.”

Galena had an operating loss last year of $33.8 million, up from the year before, when it was $21 million. The total net loss for the year of $76.6 million included a one-time charge of $41 million related to a spinoff. At the end of the first quarter of 2014, it had more than $52 million in cash and equivalents.

“In the end, it’s a matter of whether the drugs work or not and the company makes money,” Williams said. “Participating patients and shareholders hope the new treatments will be highly successful.”

Elizabeth Hayes covers health care for the Portland Business Journal.

Related links:

Industries:

Comments

If you are commenting using a Facebook account, your profile information may be displayed with your comment depending on your privacy settings. By leaving the 'Post to Facebook' box selected, your comment will be published to your Facebook profile in addition to the space below.